THE boss of a hairdressing business ‘named and shamed’ by the Government for not paying minimum wage says it made a genuine mistake.

Karen Aitken said the member of staff in question, who has now left Angel Hair Design, had been fully paid-up, although she admitted it had been fined for the error.

The salon, in Gainford, near Darlington, took on a trainee who failed to complete her apprenticeship, at which point she should have been paid the adult minimum wage.

But after being kept on she continued to be paid at the apprentice rate of £2.73 an hour for up to a year before she left.

The business was audited by Her Majesty’s Revenue and Customs (HMRC) last July when the mistake emerged and the balance owing – £703 – was paid to the 21-year-old woman in September who has now left to work in Greece.

Mrs Aitken, 57, who is originally from Staffordshire, said: “We treated this girl as a member of the family. It was a genuine mistake, she was paid the money she was owed and we paid a fine.

“We hold our hands up, we did wrong and paid the price.

“We are devastated. We are a small community hairdressing salon and three girls could lose their jobs because of this.

“I have been a hairdresser for 42 years and have employed many girls but I will never have another apprentice as long as I live, which is very sad.

“I now want to clear my good name.”

Mrs Aitken’s husband Martin said: “She didn’t finish her apprenticeship and her college work, but we kept her on for another year.

“That was where the mistake was because we carried on paying her at apprentice rate and we shouldn’t have done we should have paid her the adult minimum wage.

“We didn’t pay the right amount, but as soon as they [HMRC] told us what we needed to pay we paid it.

“We used to pay this woman’s petrol money and all sorts and my daughter even went to pick her up because she lived out in the sticks.”

Angel Hair Design was included on a 70 strong list revealed by Business Minister Jo Swinson of firms not complying with minimum wage rules and who had arrears of more than £100 in wages owing to staff.

She said naming and shaming was a “clear warning” to employers that they could face reputational consequences as well as financial penalties.